Question 13 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Table of Contents

The solution of Question 13 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Question 13 Chapter 1 of +2-A

13. Subscription received during the year ended 31st March 2019 are:
For the year ended 31st March 2018 1,600
For the year ended 31st March 2019 84,400
For the year ended 31st March 2020 3,200 89,200
There are 450 members, each paying an annual subscription of Rs 200; Rs 1,800 were in arrears for the year ended 31st March 2018.
Calculate the number of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March 2019

The solution of Question 13 Chapter 1 of +2-A: –

Calculation of Subscription outstanding at the end of the year

Total Subscription Due for the year-end 31st March, 2019 (Total Member X Amount of Subscription)
450 Members X Rs 200 each	90,000
Less: Subscription received during the year for the year 2018-19	84,400
Subscription outstanding at the end of the year	5,600

Calculation of Amount of Subscriptions

Subscription received During the year	89,200
Add: – Subscription outstanding at the end of the year	5,600
	94,800
Less:- Subscription outstanding at the beginning of the year	1,600
Subscription received in advance at the end of the year	3,200
The amount for subscription credited to the Income and Expenditure A/c	90,000


Income and Expenditure Account
Expenditures	Amount	Incomes	Amount
		By Subscription
		(450 Members X Rs 200 each)
			90,000

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Note: The total amount of Subscription received is shown in the income and expenditure account. So, we don’t need to show full calculations in the income and expenditure account.